Swipe (SXP) forms major bullish signal
It is possible that the Swipe (SXP) adjustment that has been ongoing since May has ended. A clear break above the current pattern will confirm this possibility.
Descending resistance line
SXP has been lower along with a descending resistance line since hitting an all-time high of $5.87 on May 3rd. The line has rejected the SXP four times so far, most recently on May 3rd. January 2 (red icon). The rejection led to a low of $1.11 on Jan. 24.
SXP has been on the rise ever since and it is currently trading within the $1.45 horizontal zone.
This is a key zone that has acted as a support since May 2021. Therefore, retaking this zone and moving it up will be a very important development as it will make the previous collapse another difference. This is also likely to result in a breakout above the descending resistance line mentioned above.
Daily SXP/USDT chart | Source: TradingView
Technical indicators on the daily time frame are bullish. This is particularly evident on the RSI and MACD as both have formed significant bullish divergences. This usually precedes upward moves.
Therefore, both indicators are pointing to a possible breakout above this descending resistance line.
The main resistance levels are located at $2.95 and $4.05. These are the 0.382 and 0.618 Fib retracement resistance levels, respectively.
The two-hour chart also shows that the SXP has broken the $1.38 zone. This zone is now expected to provide future support.
The wave count most likely shows the SXP correcting within a large ABC structure. If so, it is nearing the end or has completed wave C, which takes the form of an end crossover.
The fact that the SXP broke the May 13 low (red line) further supports this possibility. A breakout above the wedge confirms that the correction is complete.
Disclaimer: This article is for informational purposes only, not investment advice. Investors should research carefully before making a decision. We are not responsible for your investment decisions.